Bayer HealthCare LLC has signed a merger agreement to acquire Utah-based Schiff Nutrition International, Inc., for $1.2 billion. The transaction is expected to close by year end 2012. Schiff Nutrition International is a leading nutritional supplement company whose core brands include portfolio includes core brands MegaRed®, Move Free® and Airborne®, among others.
“Bayer is committed to augment its organic growth with strategic bolt-on acquisitions. This transaction represents an excellent strategic fit for our HealthCare business," said Dr. Marijn Dekkers, CEO of Bayer AG. “The Schiff business significantly enhances our presence and position in the United States, which accounts for more over-the-counter and nutritional products sales than any other country in the world."
According to Dr. Jörg Reinhardt, CEO of Bayer HealthCare, the company will utilize its extensive marketing, sales and distribution expertise to further develop the strong brands it is acquiring. “We will also look to leverage Schiff’s new technology platforms with innovation potential for other Bayer-owned brands and markets globally," he added.
Schiff generated net sales of $259 million for its fiscal year ended May 31, 2012. On Sept. 18, 2012, Schiff publicly announced that net sales for fiscal year 2013 were projected to grow between 43% and 46%. Expected sales growth includes contributions from new products and brand building as well as Airborne®, which was acquired by Schiff on March 30, 2012.
